Money and bank accounts
What is a cheque?
It’s an instruction to a bank to move money from one persons account to another.
What are the 2 types of bank card?
Debit or credit
What is a budget?
A budget is a plan to help us to control income and expenses.
Your pension will be more if you….
Contribute for more years (work more)
What are the 2 types of bank account?
Saving account and current account
What is a no bank card?
A card not from a bank entity. you can only use it in the establishment that issued it.
What are the 2 objectives that need to be achieved by a budget?
Incomes need to cover expenses
saving
When can a pension be used?
-retirement
-incapacity
-death
What is a bank and how does it function?
Money market intermediaries
money you put in the bank is lent to buisnesses and households that pay interest. You put the money in the bank because they pay you interest.
What is a debit card??
A card used to take money directly from your account
What is an unnecessary cost?
A cost which can be eliminated (eg. Trips)
If you have a low salary your pension will be…..
Low
What is fiat money?
It is money that has no intrinsic value
it only has value because we consider it to have value
What are two ways to make payments on a credit card?
Monthly payment - pay the money the first day of each month
deferred payment - you can pay later but you have to pay interest
What are fixed costs And necessary variable costs?
necessary variable costs are obligatory to pay but can be decreased (eg. Utilities)
What is the minimum contribution period to get a pension?
15 years
What are the three functions of money?
-store of value
—common unit of account
What is a credit card?
A card that allows you to use the bank’s money. Later you pay it back often with interest
What are the 4 steps in the process of creating a budget?
1. Identify costs and expenses
2. Prioritise expense
3. Create the budget and save money
4. Evaluate and adjust
What 3 things determine your pension
1. Years of contribution
2. Minimum contribution period
3. Regulatory basis